_________ Implies That the Economy Is a Closed System with Pendulum

question 12

Multiple Choice

_________ implies that the economy is a closed system with pendulum like movement between production and consumption.

• A)Classical economics
• B)Neoclassical economics
• C)Ecological economics
• D)Postmodern economics

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Definitions:

Allocation Of Resources

The process of distributing available resources among various competing needs or projects in an economy.

Five Fundamental Questions

The five fundamental questions refer to key economic questions any economy faces about what goods to produce, how to produce them, for whom to produce, how to accommodate change, and how to promote innovation.

Scarce Supply

A situation where the availability of a product or service is limited relative to the desire or demand for it.

Market System

A market economy characterized by investment, production, and distribution decisions that are influenced by the forces of supply and demand, with the prices of goods and services being established in a system where they are allowed to fluctuate freely.